Economic Challenges: Why Growth Without Immigration and Reform Will Fail
Handelsblatt-Chefökonom Bert Rürup and Michael Hüther, Director of the German Institute for Economic Research, highlight a structural void in Germany's growth model: the massive investment program of the federal government will fail to achieve its impact without a suffici…
Intelligence analysis by Llama
Rürup and Hüther emphasize that without sufficient immigration, Germany's growth model is incomplete. They suggest that the only remaining lever is to flexibilize working hours, as other options are not available. They also note that the current lack of public discussion on this issue is concerning.
Imagine a car that needs fuel to move. If the car doesn't have enough fuel, it won't go anywhere. Germany's economy is like that car. It needs immigration to keep growing, but if it doesn't get enough immigration, it will struggle to move forward.
Analysis
The Structural Void in Germany's Growth Model
Germany's economic growth model has historically been paired with massive immigration. However, the current development is problematic, as the net migration rate has fallen from 663,000 people in 2023 to around 235,000 in 2025. This raises concerns about the country's ability to secure its growth potential in the face of an aging population and shrinking workforce.
The Need for Immigration and Reform
Rürup and Hüther argue that without sufficient immigration, Germany's growth model is incomplete. They suggest that the only remaining lever is to flexibilize working hours, as other options are not available. They also note that a better combination of capital and labor can create productivity opportunities.
The Lack of Public Discussion
Irritatingly, both Rürup and Hüther find that neither the Union nor the SPD publicly addresses this issue. The article raises important questions about the role of immigration and reform in Germany's economic development and highlights the need for a more comprehensive discussion on this topic.
Key points
- Germany's economic growth model has historically been paired with massive immigration.
- The current net migration rate has fallen significantly, raising concerns about the country's ability to secure its growth potential.
- Rürup and Hüther argue that without sufficient immigration, Germany's growth model is incomplete.
- Flexibilizing working hours and combining capital and labor effectively could create productivity opportunities.
- The lack of public discussion on this issue is concerning and highlights the need for a more comprehensive discussion on immigration and reform.
If Germany can find a way to flexibilize working hours and combine capital and labor effectively, it could create productivity opportunities and secure its growth potential. This could lead to a more sustainable and competitive economy.
If Germany fails to address its immigration and reform challenges, it may struggle to secure its growth potential, leading to a decline in economic competitiveness and a decrease in living standards.
